# college

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Joan wants to start an IRA that will have \$250,000 in it when she retires in 21 years. How much should she invest annually in her IRA to do this if the interest is 16% compounded quarterly?

• college -

A = P(1+r/n)^nt
250000 = P(1.04)^4*21
P = 250000/1.04^84
P = 9271.28

• college -

Solve the problem. Round to the nearest cent.

Joan wants to have \$250,000 when she retires in 27 years. How much should she invest annually in her annuity to do this if the interest is 7% compounded annually?

A) \$1861.10
B) \$3356.43
C) \$2672.15
D) \$937.86

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